Since my last post on the SSEC calling for a move lower, the index has fallen 8% so far, punctuated by some whip-saw rallies. The resulting structure looks like a overlapping descending wedge, suggesting corrective action so far, unless we see a sharp breakdown in the weeks ahead. A break out of the wedge may be short-term bullish, but until that happens, we're still in a downtrend.
Note that the entire decline has been on declining volume. Last couple of sessions, saw SSEC bounce off a minor trendline (maroon) on decent volume. Is this the start of a fightback? A significant support trendline (grey) exists further down just below 2600.
Short-term trade: I may be a buyer around the lower trendline, or on a break out of the wedge, with a suitable stop below my purchase price.
Note that the entire decline has been on declining volume. Last couple of sessions, saw SSEC bounce off a minor trendline (maroon) on decent volume. Is this the start of a fightback? A significant support trendline (grey) exists further down just below 2600.
Short-term trade: I may be a buyer around the lower trendline, or on a break out of the wedge, with a suitable stop below my purchase price.
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